All of California · 2026 data
Turn your backyard into rental income
From the Central Valley to San Francisco and San Diego, a Bay Modular ADU can rent for about $1,150–4,700 a month, depending on city and size. Find your city in the calculator below — it takes about a minute.
Free · no obligation · takes about a minute
Rental income calculator
What could an ADU pay for?
Your city, your home — your monthly income.
Rent is the median asking rent for this unit size in your city (nearest tracked city if we don't track yours). Loan: typical HELOC — 8.5%, 20 years, 10% down. We set aside 5% of rent for vacancy & upkeep. Estimates only; your real numbers come with a free lot check.
A 1 Bedroom ADU in San Jose
All-in $214,900 −30% launchYou keep every month
Rent $2,750 − loan & upkeep $1,816
That's
to see how much of it your tenant covers
for college, savings or travel — before rent increases
Estimate only.
The market
Is an ADU a good investment in 2026?
Californians are building more ADUs every year, and rents keep rising. Here is the market, in official numbers.
new homes permitted in California in 2025 was an ADU (26%)
Source: HCDSan Jose metro rents since January 2021
Source: ZillowCity of Los Angeles asking rents since January 2021 ($2,247 → $2,778)
Source: ZillowAverage asking rent, San Jose metro
All rental homes, per month
Source: Zillow Observed Rent Index, Jan 2021 – Aug 2026
By region, city & model
What each model could rent for across California
Find your city or browse a region — rents for 80 California cities, the same data our calculator uses.
See the full rent table — all 80 cities, 4 models
| City | Small Studio $124,900 | Large Studio $154,900 | 1 Bedroom $214,900 | 2 Bedroom $271,900 |
|---|---|---|---|---|
| Bay Area | ||||
| San Jose | $2,250 | $2,750 | $2,750 | $3,250 |
| Palo Alto | $2,750 | $3,350 | $3,350 | $4,000 |
| Mountain View | $2,600 | $3,150 | $3,150 | $3,700 |
| Sunnyvale | $2,500 | $3,000 | $3,000 | $3,550 |
| Cupertino | $2,600 | $3,200 | $3,200 | $3,750 |
| Santa Clara (est.) | $2,400 | $2,900 | $2,900 | $3,400 |
| Campbell | $2,400 | $2,800 | $2,800 | $3,300 |
| Los Gatos | $2,500 | $2,950 | $2,950 | $3,500 |
| Saratoga | $2,500 | $2,950 | $2,950 | $3,500 |
| Milpitas | $2,200 | $2,600 | $2,600 | $3,100 |
| Menlo Park (est.) | $2,800 | $3,400 | $3,400 | $4,100 |
| Los Altos (est.) | $2,800 | $3,400 | $3,400 | $4,100 |
| Redwood City | $2,400 | $2,800 | $2,800 | $3,300 |
| San Mateo | $2,350 | $2,650 | $2,650 | $3,200 |
| Burlingame (est.) | $2,500 | $2,900 | $2,900 | $3,500 |
| Foster City (est.) | $2,450 | $2,850 | $2,850 | $3,400 |
| Daly City (est.) | $2,200 | $2,600 | $2,600 | $3,200 |
| South San Francisco (est.) | $2,300 | $2,700 | $2,700 | $3,300 |
| San Francisco | $2,650 | $3,600 | $3,600 | $4,700 |
| Fremont | $2,200 | $2,600 | $2,600 | $3,100 |
| Newark (est.) | $2,000 | $2,400 | $2,400 | $2,900 |
| Union City (est.) | $2,000 | $2,350 | $2,350 | $2,850 |
| Hayward (est.) | $1,900 | $2,250 | $2,250 | $2,750 |
| Pleasanton (est.) | $2,300 | $2,700 | $2,700 | $3,300 |
| Dublin (est.) | $2,300 | $2,700 | $2,700 | $3,300 |
| Livermore (est.) | $2,100 | $2,500 | $2,500 | $3,000 |
| Oakland | $1,750 | $2,250 | $2,250 | $3,150 |
| Berkeley (est.) | $2,000 | $2,600 | $2,600 | $3,300 |
| Alameda (est.) | $1,950 | $2,400 | $2,400 | $3,000 |
| San Leandro (est.) | $1,850 | $2,200 | $2,200 | $2,700 |
| Richmond (est.) | $1,700 | $2,050 | $2,050 | $2,500 |
| Walnut Creek (est.) | $2,200 | $2,600 | $2,600 | $3,100 |
| Concord (est.) | $1,900 | $2,200 | $2,200 | $2,700 |
| Vallejo (est.) | $1,650 | $1,850 | $1,850 | $2,350 |
| Napa (est.) | $2,000 | $2,250 | $2,250 | $2,900 |
| Santa Rosa (est.) | $1,950 | $2,200 | $2,200 | $2,850 |
| Petaluma (est.) | $2,000 | $2,300 | $2,300 | $2,950 |
| Sacramento & North | ||||
| Sacramento (est.) | $1,600 | $1,750 | $1,750 | $2,150 |
| Roseville (est.) | $1,750 | $1,950 | $1,950 | $2,400 |
| Elk Grove (est.) | $1,700 | $1,900 | $1,900 | $2,350 |
| Folsom (est.) | $1,850 | $2,050 | $2,050 | $2,500 |
| Davis (est.) | $1,750 | $1,950 | $1,950 | $2,450 |
| Redding (est.) | $1,200 | $1,300 | $1,300 | $1,700 |
| Chico (est.) | $1,200 | $1,350 | $1,350 | $1,750 |
| Central Valley | ||||
| Stockton (est.) | $1,350 | $1,500 | $1,500 | $1,900 |
| Modesto (est.) | $1,300 | $1,450 | $1,450 | $1,850 |
| Fresno (est.) | $1,350 | $1,450 | $1,450 | $1,800 |
| Bakersfield (est.) | $1,150 | $1,250 | $1,250 | $1,600 |
| Central Coast | ||||
| Santa Cruz (est.) | $2,500 | $3,000 | $3,000 | $3,800 |
| Monterey (est.) | $2,200 | $2,500 | $2,500 | $3,100 |
| Salinas (est.) | $2,000 | $2,150 | $2,150 | $2,600 |
| San Luis Obispo (est.) | $1,850 | $2,050 | $2,050 | $2,650 |
| Santa Barbara (est.) | $2,400 | $2,750 | $2,750 | $3,300 |
| Los Angeles & Ventura | ||||
| Los Angeles | $1,750 | $2,295 | $2,295 | $3,390 |
| Santa Monica (est.) | $2,400 | $3,100 | $3,100 | $4,200 |
| Pasadena (est.) | $1,950 | $2,400 | $2,400 | $3,200 |
| Glendale | $1,700 | $2,200 | $2,200 | $2,950 |
| Burbank | $1,900 | $2,300 | $2,300 | $3,250 |
| Long Beach (est.) | $1,650 | $2,000 | $2,000 | $2,700 |
| Torrance (est.) | $1,850 | $2,300 | $2,300 | $3,000 |
| Santa Clarita | $1,900 | $2,400 | $2,400 | $3,040 |
| Thousand Oaks | $2,000 | $2,500 | $2,500 | $3,000 |
| Ventura (est.) | $1,950 | $2,250 | $2,250 | $2,750 |
| Oxnard (est.) | $1,900 | $2,200 | $2,200 | $2,700 |
| Orange County | ||||
| Irvine (est.) | $2,400 | $2,800 | $2,800 | $3,400 |
| Anaheim (est.) | $2,100 | $2,400 | $2,400 | $2,950 |
| Santa Ana (est.) | $2,050 | $2,350 | $2,350 | $2,850 |
| Huntington Beach (est.) | $2,200 | $2,600 | $2,600 | $3,200 |
| Costa Mesa (est.) | $2,200 | $2,600 | $2,600 | $3,150 |
| Inland Empire | ||||
| Riverside (est.) | $1,650 | $1,850 | $1,850 | $2,300 |
| Corona (est.) | $1,750 | $1,950 | $1,950 | $2,400 |
| Temecula (est.) | $1,750 | $2,000 | $2,000 | $2,450 |
| Ontario (est.) | $1,700 | $1,900 | $1,900 | $2,350 |
| Rancho Cucamonga (est.) | $1,800 | $2,000 | $2,000 | $2,450 |
| San Bernardino (est.) | $1,450 | $1,650 | $1,650 | $2,050 |
| San Diego | ||||
| San Diego (est.) | $2,200 | $2,500 | $2,500 | $3,150 |
| Carlsbad (est.) | $2,300 | $2,700 | $2,700 | $3,350 |
| Oceanside (est.) | $2,000 | $2,300 | $2,300 | $2,850 |
| Chula Vista (est.) | $2,000 | $2,300 | $2,300 | $2,900 |
| Escondido (est.) | $1,900 | $2,200 | $2,200 | $2,700 |
Median asking rents for a studio, 1-bedroom or 2-bedroom in each city (Q3 2026); est. marks a regional estimate where we don’t have city-level data yet. Large Studio and 1 Bedroom both use 1-bedroom rents. *Pays for itself = all-in price ÷ yearly rent after a 5% vacancy & upkeep reserve, paid in cash. The Backyard Studio is an office/studio without a kitchen, so it isn’t listed as a rental. Actual rent depends on your street, size and finishes.
Factory-built
Built in a factory, earning sooner
A typical California ADU takes months on site after the permit. Ours is built in the factory while your site is prepared, then installed in about a week — so the rent starts sooner.
4–6 monthsfrom signing to keys — permits, foundation, delivery and install in one all-in price
Compare
ADU vs. other ways to make your money work
You could also buy a rental condo, invest in stocks or REITs, or park the money in Treasuries. Here is an honest side-by-side with official October 2026 numbers — including where the other options win.
Income per year before taxes and costs. ADU and rental-property figures are gross rent; plan ~5% for vacancy and upkeep plus property tax and insurance. Rates change daily — past results don’t guarantee future returns. ADU: $2,750/mo × 12 ÷ $214,900 = 15.3% (San Jose 1 Bedroom, same as the calculator). Not investment advice.
Why the ADU earns more: you already own the land
A rental condo makes you pay for land and a building. With an ADU you only pay for the home. That’s why rent per dollar is about 4× a rental condo in the San Jose or LA metro. No second mortgage at today’s ~7.3% and no investment-property loan fees. It also adds value to your home and can house family later.
Check my lot for freeWhen another option is the better choice
If you may need the money back within a few years, Treasuries or an index fund are easier to sell. If you don’t want tenants at all, stocks and REITs need no work. If your lot can’t fit an ADU, we’ll tell you in the free check.
| Option | Money to start | Typical yearly return | Risk | Your effort | What you get |
|---|---|---|---|---|---|
| Backyard ADU | From $75,900 all-in — or a home equity loan | ~15% a year in rent on what you spend* | Medium: vacancy and repairs | Landlord tasks or a property manager | A home on land you already own; family can use it |
| Buy a rental condo or house | 15% down + fees: ~$96,000 on a $640,000 CA condo | 3.0–3.9% rent yield in big CA metros | Medium–high: a second mortgage at ~7.3% | Landlord tasks + HOA, tax, insurance | A second property |
| S&P 500 index fund | Any amount | ~10% a year on average since 1928 — big swings | High year to year | None | Shares; easy to sell |
| REIT fund | Any amount | 3.9% dividends; 5.4% a year total over 10 yrs | Medium–high | None | Shares; easy to sell |
| Treasuries & CDs | Any amount | 4.5–5.3% Treasuries; CDs avg 1.7% | Very low | None | A fixed payout; no growth |
| Buy an Airbnb property | Price of a second home | Depends on permits | High: city rules | High: guests, cleaning | Often not allowed — see below |
Three ways
An ADU pays you back three ways
01Monthly rent
A long-term tenant can cover your loan and then some. New ADUs are exempt from California’s statewide rent cap for 15 years.
02Property value
In California appraisals, homes with an ADU had a higher median value ($1.06M vs. $715K in 2023) and grew faster (FHFA).
03Family, close by
Parents or adult kids get their own front door — and you skip paying someone else’s rent.
Later, the rent can help you borrow
For the build loan, lenders look at your income and home equity. Once the ADU is built and leased, Fannie Mae, Freddie Mac and FHA let lenders count its rent toward your income — up to 30% of qualifying income — when you refinance or buy.
Plan ahead
The real costs of renting — honestly
No surprises later. Here’s what to plan for as an ADU landlord in California.
Property tax
Only the new ADU’s value is added — your house keeps its current Prop 13 value.
Insurance
Switch to a landlord policy and ask tenants for renters insurance.
Vacancy & upkeep
Our calculator reserves 5% of rent for empty months and repairs — adjust it to your plans.
Rental rules
Many cities require stays of 30+ days, so plan for long-term tenants, not Airbnb.
Income tax
Rent is reported on Schedule E; the ADU is usually depreciated over 27.5 years. Ask your tax pro.
How to rent out your ADU in California
10 simple steps — city rules, rent control, deposits, screening, leases and taxes — plus a printable landlord checklist.
Read the guideHow much can I rent an ADU for in California?
Across the 80 California cities we track, median asking rents run about $1,150–4,700 a month depending on city and size — lower in the Central Valley, higher on the coast. Most Bay Area ADUs rent for about $1,900–3,600 a month. Bay Area homeowners expect around $2,000–2,500 (ABAG, 2025), and average asking rent for all homes in the San Jose metro was $3,815 in August 2026 (Zillow).
How long does an ADU take to pay for itself?
In the Bay Area, a Bay Modular ADU typically pays for itself in 3–7 years from rent, compared with 25+ years for a site-built home. In our San Jose 1 Bedroom example it takes about 6.9 years if paid in cash. Where rents are lower it takes longer — check your city in the calculator.
Can the rent cover my loan payment?
Often, yes. In our San Jose example a $2,750 rent covers a $1,678 loan payment and leaves about $934 a month. Use the calculator to try your own city, model and loan.
Will an ADU raise my property taxes?
Only the value of the new ADU is added to your assessment. Your main house keeps its current Prop 13 value.
Is my ADU subject to rent control?
A newly built ADU is exempt from California’s statewide rent cap and just-cause rules for 15 years after its certificate of occupancy. Some cities have additional local rules.
Can I rent my ADU on Airbnb?
Usually not for stays under 30 days. Many Bay Area cities restrict short-term rentals in ADUs, so plan on long-term tenants.
Can ADU rent help me get a loan?
Yes, once the ADU is built and rented. Fannie Mae, Freddie Mac and FHA let lenders count ADU rent toward qualifying income, up to 30% of the total — useful when you refinance later. For the build loan itself, lenders usually look at your current income and home equity.
Is an ADU a better investment than buying a rental property?
For most California homeowners with room on their lot, yes. You don’t buy land, so rent per dollar invested is much higher: about 15% gross in our San Jose example vs. 3–4% for a typical rental home in the LA, San Jose, San Francisco or San Diego metros (Zillow, Aug 2026). A second property also needs 15% down and an investment-property loan near today’s ~7.3% rates.
ADU vs. stocks or Treasuries — which is better?
They do different jobs. Treasuries paid 4.5–5.3% in October 2026 with almost no risk, and the S&P 500 averaged about 10% a year since 1928 with big swings; both are easy to sell. An ADU earns more rent per dollar and adds home value, but takes landlord work and is not quick to cash out. Many owners do both. Not investment advice.
Does an ADU increase my home’s value?
In California purchase appraisals, homes with an ADU had a higher median value ($1.06M vs. $715K in 2023) and appreciated faster (FHFA). Every property is different.
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Sources: Bay Modular rent table — city median asking rents and regional estimates (Q3 2026); California HCD Annual Progress Report data (2021–2025); Zillow Observed Rent Index (Aug 2026); HUD Fair Market Rents FY2026; ABAG 2025 ADU Homeowner Survey; FHFA (Jan 2025); Fannie Mae Selling Guide B3-3.8-02, Freddie Mac ADU fact sheet (2026) and HUD Handbook 4000.1; California Civil Code §1947.12; Rev. & Tax. Code §71; U.S. Treasury daily par yield curve (Oct 6, 2026); FDIC national rates and rate caps (Sep 2026); FTSE Nareit All Equity REITs (Sep 2026); NYU Stern Damodaran, S&P 500 returns 1928–2025; Zillow ZHVI & ZORI metro data (Aug 2026); C.A.R. median condo price (Aug 2026); Freddie Mac PMMS (Oct 1, 2026); Fannie Mae Eligibility Matrix & LLPA Matrix (2026); City of Los Angeles Home-Sharing, SF Planning, City of San Diego STRO (2026).. Estimates only — not financial, tax or legal advice. Updated October 2026.